Roper Technologies has agreed to buy Frontline Education from software investment firm Thoma Bravo in a $3.73bn all-cash deal.
The company said on Tuesday that Frontline’s cloud-based software provides a connected platform of administrative solutions that are purpose-built for K-12 education, including human capital management, business operations management, student management, and analytics.
More than 10,000 educational organisations, representing millions of educators, administrators, and support personnel, utilise Frontline’s tools to automate their operations and gain insights that enable improved efficiency and productivity.
Roper expects Frontline to contribute around $370m of revenue and $175m of EBITDA in 2023. It also expects Frontline’s annual unlevered free cash flow to be approximately 100% of EBITDA.
Roper president and chief executive Neil Hunn said: “Frontline is a terrific business with clear niche market leadership, a proven track record of strong organic and inorganic growth, excellent cash conversion, and an outstanding management team that will thrive as part of Roper.
“The acquisition of Frontline demonstrates Roper’s disciplined capital deployment strategy that focuses on identifying high-quality, market-leading technology businesses that will enhance Roper’s cash flow compounding.”
The deal is expected to close in the fourth quarter.